1. Field of Invention
This invention relates to a power distribution system, specifically to a power distribution system including a means of reducing peak demand.
2. Description of Prior Art
A utility distributes electricity to consumption units such as residential and commercial units through power grids and sub-grids. The consumption units do not always consume power at a constant rate. In some instances, the utility may experience periods of peak power demand that are greater than the average power demand. In order to satisfy the power demand during periods of peak demand, the utility may operate at or near to maximum capacity, it may operate supplemental generators, and/or it may purchase electricity from other sources. When the electrical distribution system runs near capacity, there is a potential that the system may fail, and operating supplemental generators and purchasing electricity from other sources may increase the utility's operating costs and may have a significant negative environmental impact.
As a result, methods have been adopted by utility to discourage power consumption during peak demand period. The utility may charge a consumption unit a premium for peak electricity demand. For example, the premium may take a form of higher average rates and/or additional charges based on the consumer's peak demand. Effectiveness of such an approach depends largely on awareness of consumers on the price and their willingness to take appropriately actions and is essentially unpredictable.
It is desirable to have a predictable method for reducing the peak demand of the power consumptions.